Stocks
Risk to reward calculator
Weigh the loss if a stop is hit against the gain if the price is reached.
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Result
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Reward for each rupee of risk
3
- Loss per share if the stop is hit
- PKR 20
- Gain per share if the price is reached
- PKR 60
- Loss for all the shares
- PKR 2,000
- Gain for all the shares
- PKR 6,000
- Share of trades that must work to break even
- 25%
How it is calculated
Loss per share = entry - stop. Gain per share = profit-taking price - entry.
Reward for each rupee of risk = gain per share / loss per share.
Share of trades that must work to break even = loss / (loss + gain), before costs.
The loss and the gain for all the shares are those per-share figures times the shares.
Assumptions
- The result describes the plan you enter, not what will happen.
- The costs of dealing and tax are not counted.
- A price can jump past a stop, so a real loss can be larger.
- This shows how a plan is weighed. It does not say what to trade.
Results are worked out from the figures you enter and are only estimates. They are not advice.
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